CAIRO COMMUNICATIONS SPA (CAI.MI) Stock Fundamental Analysis
BIT:CAI - Euronext Milan - IT0004329733 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to CAI. CAI was compared to 62 industry peers in the Media industry. CAI has an average financial health and profitability rating. CAI has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year CAI was profitable.
CAI had a positive operating cash flow in the past year.
In the past 5 years CAI has always been profitable.
Each year in the past 5 years CAI had a positive operating cash flow.
1.2 Ratios
CAI has a Return On Assets (2.18%) which is comparable to the rest of the industry.
With a Return On Equity value of 6.92%, CAI perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
CAI's Return On Invested Capital of 6.04% is in line compared to the rest of the industry. CAI outperforms 53.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAI is below the industry average of 8.15%.
The last Return On Invested Capital (6.04%) for CAI is above the 3 year average (5.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 6.92% | ||
| ROIC | 6.04% |
ROA(3y)2.14%
ROA(5y)2.03%
ROE(3y)7%
ROE(5y)6.89%
ROIC(3y)5.4%
ROIC(5y)5.14%
1.3 Margins
Looking at the Profit Margin, with a value of 2.70%, CAI is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CAI has grown nicely.
CAI's Operating Margin of 6.98% is in line compared to the rest of the industry. CAI outperforms 53.23% of its industry peers.
CAI's Operating Margin has improved in the last couple of years.
CAI has a better Gross Margin (71.57%) than 72.58% of its industry peers.
CAI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.98% | ||
| PM (TTM) | 2.7% | ||
| GM | 71.57% |
OM growth 3Y1.56%
OM growth 5Y2.61%
PM growth 3Y-2.92%
PM growth 5Y3.71%
GM growth 3Y-0.01%
GM growth 5Y-0.93%
2. Health
2.1 Basic Checks
CAI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CAI has about the same amout of shares outstanding than it did 1 year ago.
CAI has about the same amout of shares outstanding than it did 5 years ago.
CAI has a better debt/assets ratio than last year.
2.2 Solvency
CAI has an Altman-Z score of 1.43. This is a bad value and indicates that CAI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.43, CAI is in line with its industry, outperforming 46.77% of the companies in the same industry.
CAI has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as CAI would need 2.53 years to pay back of all of its debts.
CAI's Debt to FCF ratio of 2.53 is fine compared to the rest of the industry. CAI outperforms 74.19% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that CAI is not too dependend on debt financing.
The Debt to Equity ratio of CAI (0.30) is better than 66.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.91
WACC6.65%
2.3 Liquidity
A Current Ratio of 0.96 indicates that CAI may have some problems paying its short term obligations.
The Current ratio of CAI (0.96) is comparable to the rest of the industry.
CAI has a Quick Ratio of 0.96. This is a bad value and indicates that CAI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.93, CAI is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.19% over the past year.
The Earnings Per Share has been growing slightly by 1.43% on average over the past years.
CAI shows a decrease in Revenue. In the last year, the revenue decreased by -1.00%.
The Revenue has been decreasing by -2.20% on average over the past years.
EPS 1Y (TTM)26.19%
EPS 3Y-3.94%
EPS 5Y1.43%
EPS Q2Q%-4.7%
Revenue 1Y (TTM)-1%
Revenue growth 3Y-1.05%
Revenue growth 5Y-2.2%
Sales Q2Q%-0.14%
3.2 Future
CAI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.48% yearly.
Based on estimates for the next years, CAI will show a decrease in Revenue. The Revenue will decrease by -1.55% on average per year.
EPS Next Y-2.94%
EPS Next 2Y-1.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.08%
Revenue Next 2Y-1.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.72, the valuation of CAI can be described as reasonable.
CAI's Price/Earnings ratio is a bit cheaper when compared to the industry. CAI is cheaper than 79.03% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.29, CAI is valued rather cheaply.
CAI is valuated reasonably with a Price/Forward Earnings ratio of 8.45.
Based on the Price/Forward Earnings ratio, CAI is valued a bit cheaper than 74.19% of the companies in the same industry.
CAI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 8.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CAI is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
CAI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CAI is cheaper than 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.51 | ||
| EV/EBITDA | 2.84 |
4.3 Compensation for Growth
CAI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.78
EPS Next 2Y-1.48%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CAI has a Yearly Dividend Yield of 5.69%, which is a nice return.
Compared to an average industry Dividend Yield of 5.44, CAI pays a better dividend. On top of this CAI pays more dividend than 82.26% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, CAI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
5.2 History
The dividend of CAI is nicely growing with an annual growth rate of 21.85%!
Dividend Growth(5Y)21.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
90.91% of the earnings are spent on dividend by CAI. This is not a sustainable payout ratio.
CAI's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP90.91%
EPS Next 2Y-1.48%
EPS Next 3YN/A
BIT:CAI (7/8/2025, 9:40:28 AM)
2.818
-0.01 (-0.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners8.98%
Inst Owner ChangeN/A
Ins Owners51.48%
Ins Owner ChangeN/A
Market Cap378.80M
Analysts84
Price Target3.37 (19.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
Yearly Dividend0.27
Dividend Growth(5Y)21.85%
DP90.91%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)22.22%
PT rev (3m)22.22%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 8.45 | ||
| P/S | 0.26 | ||
| P/FCF | 4.51 | ||
| P/OCF | 3.16 | ||
| P/B | 0.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.84 |
EPS(TTM)0.29
EY10.29%
EPS(NY)0.33
Fwd EY11.83%
FCF(TTM)0.62
FCFY22.15%
OCF(TTM)0.89
OCFY31.68%
SpS10.92
BVpS4.26
TBVpS-3.06
PEG (NY)N/A
PEG (5Y)6.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 6.92% | ||
| ROCE | 7.74% | ||
| ROIC | 6.04% | ||
| ROICexc | 6.45% | ||
| ROICexgc | 31.21% | ||
| OM | 6.98% | ||
| PM (TTM) | 2.7% | ||
| GM | 71.57% | ||
| FCFM | 5.72% |
ROA(3y)2.14%
ROA(5y)2.03%
ROE(3y)7%
ROE(5y)6.89%
ROIC(3y)5.4%
ROIC(5y)5.14%
ROICexc(3y)5.69%
ROICexc(5y)5.5%
ROICexgc(3y)28.8%
ROICexgc(5y)30.92%
ROCE(3y)6.92%
ROCE(5y)6.59%
ROICexcg growth 3Y-9.32%
ROICexcg growth 5Y-1.86%
ROICexc growth 3Y-1.33%
ROICexc growth 5Y0%
OM growth 3Y1.56%
OM growth 5Y2.61%
PM growth 3Y-2.92%
PM growth 5Y3.71%
GM growth 3Y-0.01%
GM growth 5Y-0.93%
F-Score6
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.53 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 46.94% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | 10.14 | ||
| Cash Conversion | 66.93% | ||
| Profit Quality | 211.87% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.43 |
F-Score6
WACC6.65%
ROIC/WACC0.91
Cap/Depr(3y)75.43%
Cap/Depr(5y)61.61%
Cap/Sales(3y)5.26%
Cap/Sales(5y)4.26%
Profit Quality(3y)132.72%
Profit Quality(5y)215.11%
High Growth Momentum
Growth
EPS 1Y (TTM)26.19%
EPS 3Y-3.94%
EPS 5Y1.43%
EPS Q2Q%-4.7%
EPS Next Y-2.94%
EPS Next 2Y-1.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1%
Revenue growth 3Y-1.05%
Revenue growth 5Y-2.2%
Sales Q2Q%-0.14%
Revenue Next Year-2.08%
Revenue Next 2Y-1.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y34.91%
EBIT growth 3Y0.5%
EBIT growth 5Y0.35%
EBIT Next Year87.25%
EBIT Next 3Y22.61%
EBIT Next 5YN/A
FCF growth 1Y23.2%
FCF growth 3Y-13.31%
FCF growth 5Y-4.15%
OCF growth 1Y12.46%
OCF growth 3Y-9.13%
OCF growth 5Y-1.93%